Form 4: Flowserve Director Cheryl H. Johnson Reports Acquisition of Phantom Stock

Director Cheryl H. Johnson reported the acquisition of phantom stock in Flowserve Corp on May 2, 2024, as part of deferred compensation.

Summary

• On May 2, 2024, Cheryl H. Johnson, a director of Flowserve Corp, reported acquiring 610 shares of phantom stock.
• The phantom stock was acquired as part of director compensation deferred in the form of common stock.
• Each share of phantom stock is equivalent to one share of common stock.
• The shares become payable in common stock upon termination of service as a board member.
• Following the transaction, Johnson directly owns 1,292 derivative securities.
• The price of the derivative security is $47.1.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing, indicating a neutral sentiment. It reflects standard compensation practices.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company.
• Deferred compensation can be a tax-efficient way to compensate directors.

Future Outlook

The phantom stock will be converted to common stock upon the director's termination of service.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units (RSUs).
• Phantom stock is a less common but still utilized form of deferred compensation, similar to RSUs but without actual shares being issued until a later date.
• Companies like General Electric and Siemens also use deferred compensation plans for their executives and board members.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It provides transparency regarding director compensation.

Key Dates